@liebegott Labor is the largest expense for most companies. Why do you think they use the term price/wage spiral?
The issue is that population growth has been stagnating. There aren't enough workers to replace the retiring baby boomers. The only way that will be resolved without inflation is a recession to decrease the the number of participants in the economy or an increase in available labor.
@bluegrassfan Whether it's defined as QE or not, an increased balance sheet only serves to prop up the bonds market and continue to let big players exit
@bluegrassfan The evil running the show is mind boggling. Bail out the bankers at any cost but heaven forbid the lower and middle classes have low unemployment. If these guys truly can’t come up with a better solution, the system is broken and needs to be replaced.
@matrix80 Yeah doesn't soft landing mean slow moves back down? Now it seems like they're just trying to break things. But hey when people are unemployed at least they won't need to keep their money in the non-existent failed banks
@bluegrassfan Powell wanted two million more people laid off. How about fail all those banks and lay off two million of those bankers? Fuck you, Powell.
@davp What would really be nice is if we could figure out how to have a stable economy without making millions of people unemployed and suffering to curb "inflation".
@lovetolive2112 Especially since the inflation is not due to wage growth, but initially supply issues, and now price gouging. No one’s wages went up 6% year over year.
@lovetolive2112 The funny thing is it’s not only the 2M they want to impact. Those 2M probably won’t have a sizable impact on aggregate demand but the fact that companies will be letting people go means they’ll gain the upper hand in wage negotiations again through fear tactics. It’s literally economic terrorism
@davp I get the fuck banks and thats good and all and they should definitely be more tighly regulated (thanks Trump....). But letting all banks fail would lead to a shitload of pain for everyone.
@bloikr Not all banks, just those banks that were supposed to fail like in a normal capitalistic economy. But the point really is that Powell wanted two million more people to suffer and laid off, and once the rooster came home to nest and affect the financial industry of the private Federal Reserve, which is not a government agency, oh no we can’t have any of the banks fail.
